Key facts
- CalPERS has added AI provisions to its proxy voting guidelines.
- Investors are using proxy voting to influence corporate AI strategies.
- CalPERS is developing a fund-wide framework to assess AI risks.
- AI risk assessment is expanding beyond technology sectors to infrastructure and real estate.
Pension funds and asset managers globally are intensifying their oversight of how companies manage artificial intelligence, seeking to safeguard portfolio values. The California Public Employees' Retirement System (CalPERS) has, for the first time, included specific provisions related to AI in its proxy voting guidelines. This move reflects a growing institutional concern that AI's disruptive potential extends beyond technology sectors into areas like infrastructure and real estate, and could impact labor markets. CalPERS' board has directed its investment staff to create a comprehensive framework for evaluating AI risks across the fund's entire $637.1 billion portfolio. This approach signifies a shift from viewing AI solely as a technology sector issue to recognizing its cross-asset class implications.